Instruction No. 16/2024 on the Disclosure of Maximum Rates Applicable to Consumer Credit Contracts in the First Quarter of 2025

Instruction No. 16/2024
BO No. 11/2024 3rd Supplement • 2024/12/05
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Topics
Supervision :: Behavioral Supervision
Mod. 99999940/T – 01/14
Index
Text of the Instruction
Text of the Instruction
Subject: Disclosure of maximum rates applicable to consumer credit contracts in the 1st quarter of 2025

Decree-Law No. 133/2009, of June 2, which transposed into the internal legal order Directive No. 2008/48/EC, of April 23, regarding consumer credit contracts, established the regime of maximum rates applicable to these contracts.

In accordance with Article 28 of Decree-Law No. 133/2009, in the current wording, the maximum rates for each type of credit are determined based on the Average Effective Annual Percentage Rates (APR) practiced in the market by credit institutions in the previous quarter, increased by a quarter. Additionally, the maximum rate of any type of credit may not exceed the average APR of the entire consumer credit market, increased by 50%. Applying the criterion defined by law, the Bank of Portugal quarterly discloses the maximum rates for the different types of credit, for application to contracts to be concluded in the following quarter.

The rates defined in this Instruction constitute maximum limits on the charges that can be contracted in each type of credit contract, and under no circumstances may they be referred to as “legal rates”. The freedom to contract financing conditions remains, with the sole exception of compliance with these limits.

Thus, in the exercise of the competence attributed to it by Article 17 of its Organic Law and by Article 28 of Decree-Law No. 133/2009, of June 2, the Bank of Portugal determines the following:

1. Consumer credit contracts, concluded within the scope of Decree-Law No. 133/2009, of June 2, shall observe the maximum rate regime defined in Article 28.

2. In the 1st quarter of 2025, the maximum rates set out in the tables below shall apply to each type of credit contract:

Instruction No. 16/2024 BO No. 11/2024 3rd Supplement • 2024/12/05 Topics Supervision :: Behavioral Supervision
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Mod. 99999940/T – 01/14

1st quarter of 2025

Credit Type	Maximum APR
Personal Credit	9.0%
Purpose: Education, Health, Renewable Energies and Financial Leasing of Equipment
Other Personal Credits (without specific financing, home, consolidated and other purposes)	15.9%
Automobile Credit
Financial Leasing or ALD: new	6.4%
Financial Leasing or ALD: used	8.3%
With retention of ownership and others: new	11.3%
With retention of ownership and others: used	14.4%
Credit Cards, Credit Lines, Bank Current Accounts and Overdraft Facilities	19.2%

1st quarter of 2025

Credit Type	Maximum NAR
Credit Overdrafts	19.2%

3. The types of credit contracts set out in the previous tables correspond to the credit categories defined in Instruction No. 14/2013, except for credit overdrafts which are defined in Decree-Law No. 133/2009.

4. This Instruction enters into force on January 1, 2025.